Frank Holmes Sticks By $1,500 Gold Call

Gold has historically been depressed ahead of Fed meetings but rallies immediately afterward, said Frank Holmes.

(Kitco News) - Gold has historically been depressed ahead of Fed meetings but rallies immediately afterward, said Frank Holmes, CEO of U.S. CEO of U.S. Global Investors.

"There's a lot of parity trading that basically depresses gold going into that and after that, and after we finally get the rate rise behind this, gold pops," Holmes told Kitco News.

Holmes cited the Bank Credit Analyst, an independent macroeconomics research firm, on their bearish dollar stance.

"It doesn't matter what Kudlow says...he says the dollar is going to rise and gold will fall, and put tariffs on China. The tariffs on China are actually going to weaken the dollar, which is good for gold," Holmes said.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

TAGS: Investing | Video

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